Bonso Reports Half Year Results

HONG KONG, March 23, 2018 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (NASDAQ:BNSO) today announced its unaudited results for the six-month period ended September 30, 2017.

Bonso reported net income for the six-month period ended September 30, 2017 of $0.69 million, or $0.14 basic earnings per share, as compared to net income of $1.10 million, or $0.21 basic earnings per share, posted during the six-month period ended September 30, 2016. Net sales for the six-month period ended September 30, 2017 decreased 38.8% to $6.2 million from $10.2 million for the six-month period ended September 30, 2016. The decreased net income resulted from the decline in revenue and the corresponding decline in income from the operations for the six-month period ended September 30, 2017.

Mr. Anthony So, Chairman and CEO stated: “Although our revenue decreased as compared with the same period in the previous year, we are pleased that our operations remained profitable.”

Mr. So said further: "To cope with the decrease in demand for our products and the loss of significant customers, we will continue to invest in and develop new or upgraded products for our customers and target customers. Also, we will be advertising our services and products through different platforms and trade exhibitions, which we hope will result in additional sales revenue for the Company. In addition, the Company will build more production facilities to generate additional rental income by leasing those facilities to third parties.”

About Bonso Electronics

Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and pet electronics products. Bonso products are manufactured in the People's Republic of China for customers primarily located in North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and just-in-time delivery. Bonso also independently designs and develops electronic products for private label markets. For further information, visit the company's web site at http://www.bonso.com.

This news release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phrases as "should," "intends," "is subject to," "expects," "will," "continue," "anticipate," "estimated," "projected," "may," "I or we believe," "future prospects," “our strategy” or similar expressions. Forward-looking statements made in this press release, which relate to the reduction of losses and a positive impact upon our future operations as a result of the sale of assets involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update “forward-looking” statements.

For more information please contact:

Albert So
Chief Financial Officer and Secretary
Tel: 852 2605 5822
Fax: 852 2691 1724

-- Tables to Follow –
Unaudited Consolidated Balance Sheets
(Expressed in United States Dollars)
March 31, September 30,
2017 2017
$ in thousands $ in thousands
(Audited) (unaudited)
Assets
Current assets
Cash and cash equivalents3,745 7,044
Trade receivables, net1,167 973
Inventories1,018 200
Other receivables, deposits and prepayments 1,646 1,006
Financial instruments at fair value167 0
Total current assets7,743 9,223
Investment in life settlement contracts144 146
Other intangible assets 2,785 2,761
Property, plant and equipment, net10,294 10,252
Total assets20,966 22,382
Liabilities and stockholders’ equity
Current liabilities
Notes payable 134 119
Accounts payable1,183 873
Accrued charges and deposits3,018 4,651
Income tax liabilities533 0
Short-term bank loans143 35
Payable to affiliated party54 0
Current portion of long-term debt and capital lease obligations44 46
Loan from affiliated party - current portion135 135
Total current liabilities5,244 5,859
Capital lease obligations, net of current portion60 34
Loan from affiliated party - non current portion67 0
Total liabilities5,371 5,893
Stockholders’ equity
Common stock par value $0.003 per share
- authorized shares - 23,333,334
- issued shares: Mar 31, 2017 - 5,577,639; Sept 30, 2017 - 5,553,63917 17
outstanding shares: Mar 31, 2017 – 5,009,120; Sept 30, 2017 - 4,903,686
Additional paid-in capital22,566 22,508
Treasury stock at cost: Mar 31, 2017 - 568,519; Sept 30, 2017 - 649,953-1,929 -2,120
Accumulated deficit-6,033 -5,345
Accumulated other comprehensive income974 1,429
15,595 16,489
Total liabilities and stockholders’ equity20,966 22,382


Unaudited Consolidated Statements of Operations and Comprehensive Loss
(Expressed in United States Dollars)
Six months ended September 30, 2016 Six months ended September 30, 2017
$ in thousands $ in thousands
(unaudited) (unaudited)
Net sales10,163 6,217
Cost of sales-7,006 -4,516
Gross profit3,157 1,701
Selling expenses-151 -125
Salaries and related costs-1,179 -752
Research and development expenses-103 -70
Administration and general expenses-1,531 -1,080
Other income821 1,141
Income from operations1,014 815
Interest income4 15
Interest expenses-24 -6
Foreign exchange gain / (loss)150 -136
Income before income taxes1,144 688
Income tax expense-46 0
Net income1,098 688
Other comprehensive loss, net of tax:
Foreign currency translation adjustments, net of tax-676 455
Comprehensive income 422 1,143
Earnings per share
Weighted average number of shares outstanding5,154,454 4,967,713
Diluted weighted average number of shares outstanding5,204,981 5,300,353
Earnings per common share ( in U.S. Dollars) 0.21 0.14
Earnings per common share ( in U.S. Dollars) - assuming dilution0.21 0.13

Source:Bonso Electronics International, Inc.